Robert Richter, QC, said the case against Clark was built on lies told by police to cover up a racist and unlawful attempt to remove Aborigines from Warrnambool's Criterion Hotel.

Clark is appealing against conviction and a $2000 fine that Warrnambool Magistrates court imposed in March.

Police say the Aboriginal leader stopped police from lawfully evicting banned patron Jamie "Boss" Chatfield from the hotel in May last year and told his associates to prevent police and patrons from leaving. In a struggle that followed, police used capsicum spray to subdue Clarke and others.

If Judge White grants the request, Clark, 51, will be cleared of the charges, presenting Indigenous Affairs Minister Amanda Vanstone with the quandary of whether to reinstate him as ATSIC chairman. Then-minister Philip Ruddock suspended Clark on full pay in August.

"What the evidence has demonstrated conclusively is that the police case and the accounts of the police officers are built on a careful lie," Mr Richter said.

He said evidence from the six police who were at the hotel was at odds with accounts of hotel patrons and bar staff and was the result of collusion. "They decided a common line... we only went to the Criterion to eject Mr Chatfield," Mr Richter said. Non-police witnesses did not support evidence from police that Clark told his group to block doors and prevent people from leaving the bar, he said.

Mr Richter said numerous witnesses had told the court that Clark and his group had not troubled police until attempts were made to remove them. "This is not a drunken, rowdy crowd of Aboriginals, except when it suits the police to say they are," he said.For the Crown, Colin Hillman, SC, said the evidence was overwhelming that publican John Palmer and police "wanted Chatfield out and Chatfield alone".

If Judge White rules against Clark's request, the hearing will continue, with Clark expected to give evidence today.